Embed Size (px)
Citation preview
BUSINESSTHEGRANDRAPIDSPRESSPAGE A10 FRIDAY, AUGUST 26, 2011
BY MYRON KUKLA
THE GRAND RAPIDS PRESS
HOLLAND — The line ofjob applicants was half-way around the Double-tree Inn and out intothe parking lot when the
doors of the Gentex Corp. job fairopened Thursday.At day’s end, Gentex staff had
met with 1,500 people applying forabout 300 production and 100 en-gineering technical jobs with theZeeland-based high-tech automotivecomponents manufacturer.Unlike a year ago, when almost ev-
eryone showing up for job fairs wasunemployed, a fair share of those ap-plying to Gentex were alreadywork-ing but looking for a better job.“I’ve got a job now, but if I could
get into Gentex, which has a greatreputation and is growing, I’d do itin a heartbeat,” said a 28-year-oldGrand Rapids resident, one of ahandful of people who talked to aPress reporter but wanted to remainanonymous so as not to tip off theircurrent employer that they were jobhunting.Gentex Vice President of Hu-
man Resources Bruce Los said thecompany likes to hire people whoare already working because it indi-cates a higher level of employee andexperience.“If people want to upgrade their
jobs, we want to talk with them. Ifthey get a job here, that opens a jobwith their employer for someoneelse,” he said.The fair did attract a lot of people
who didn’t have jobs but want one.“All I can say is ‘Hire me.’ I’m
young, energetic and experienced,”said Daniel Gunsberg, of GrandHaven, who has spent 18 monthssearching for a job.“I’m really interested in a job in
supply chain management, but opento any opportunity,” said Gunsberg,
32, who has a degree from Michi-gan State University in constructionmanagement andworked in the con-struction field in Denver.Gentex has a total planned hiring
of 1,100 workers over the next threeto four years.“We’re pretty confident of growth
in the next few years based on whatwe’re seeing in mirror sales,” Lossaid.The company has 3,300 employ-
ees, mainly at its Zeeland plant. Thismonth, Gentex was awarded a statetax credit by theMichigan EconomicGrowth Authority valued at up to$2.4 million for facility expansion.The company is looking at invest-
ing about $160 million in facilitiesand equipment over the next fiveyears. It already has hired 600 newemployees since its last job fair eightmonths ago.Zella Jackson Hannum of Green-
ville sought out Los personally todeliver her 14-page resume thatincluded a stint with IBM and an
Internet start-up company.“I’mworking onmy Ph.D. research
on determining critical factors ofproduct quality in new technologydevelopment that should be veryhelpful to Gentex in product devel-opment,” said Hannum, who ownsa Greenville-based consulting com-pany but would like to move to theHolland-Zeeland area.Those making the cut for half-day
interviews with the company couldbe working on the line at Gentex inabout three weeks, Los said.The pay range for line jobs start
at $12 an hour with full benefits andprofit sharing after a 90-day trialperiod.Los said the quality of those ap-
plying is very high.“I’d say over half the people ap-
plying met our qualifications. And ifthey don’t make the first cut, we willkeep them in our database for per-haps another call back,” Los said.
Email: [email protected]
BY CAMI REISTER
THE GRAND RAPIDS PRESS
The unemployment rate rose inmuch of the state last month, reflect-ing a seasonal boost.But state analyst Rick Waclawek,
director of the Bureau of Labor Mar-ket Information and Strategic Initia-tives, said the upward bump was lessthan normal.“This was partly due to fewer
than normal temporary layoffs re-lated to retooling in the auto sector,”Waclawek said.Before the recession, July used to
see a loss of about 35,000 manufac-turing jobs. Last month saw a loss ofonly 11,000.In West Michigan, the rate for
the major statistical areas remainedessentially flat, going up or down by
one-tenth to three-tenths of a percent-age point.In the Holland-Grand Haven area,
or all of Ottawa County, it dropped to9 percent from 9.1 percent.In theGrandRapids-Wyoming area,
it rose from 9 percent to 9.1 percent.I n the Muskegon -Nor ton
Shores area, it went from 10.9 to11.2 percent.And in the Kalamazoo-Portage area,
it went from 9.3 to 9.5 percent.The Holland-Grand Haven and
Grand Rapids-Wyoming areas rankedsecond and third respectively amongthe states’ metro areas for having thelowest unemployment.TheAnnArborarea came in first with 7.8 percent.Jason Palmer, an economic analyst
with the state Department of Tech-nology, Management & Budget, saidthe slight drop in Holland-Grand
Haven was due to “a moderate la-bor force growth and an uptick inemployment.”Palmer said the advances were
seasonal and came in constructionand leisure and hospitality, whileloses came in the government sector,still evidence of schools on summerbreak.The jobless rate in all areas was
down significantly from a year agowhen rates topped 11 percent.“While jobless rates are improved
over the year, unemployment remainshigher than pre-recessionary levels,”Palmer said.At the county level, 57 of the
state’s 83 counties reported job-less rate increases from June, while21 counties registered drops. Fivewere unchanged. Most of the dropscame in Northern Michigan. When
compared to a year ago, rates fell in79 of the 83 counties.
Email: [email protected]
BY THE NUMBERS
County levelunemployment ratesfor JulyBarry: 7.8 percentKent: 8.9 percentOttawa: 9 percentKalamazoo: 9.2 percentAllegan: 9.5 percentCass: 9.9 percentCalhoun: 10.3 percentVan Buren: 10.5 percentNewaygo: 10.7 percentMuskegon: 11.2 percentBranch: 11.2 percentOceana: 11.5 percentIonia: 11.7 percentSt. Joseph: 12.2 percentMontcalm: 13.6 percentMichigan: 13.2 percent
SOURCE: Michigan Department of Technology,
Management & Budget
Gentex: Now hiringEmployed and unemployedapplicants line up for job fair
Ready to work:Daniel Gunsberg,of Grand Haven, wasamong several hundredjob-seekers whoattended the Gentexjob fair in Holland onThursday. The Zeelandcompany plans to hire1,100 workers during thenext five years.
“All I can sayis ‘Hire me.’I’m young,energetic andexperienced.”
— Daniel Gunsberg,Grand Haven
PRESS PHOTOS/MARK COPIER
No looking back: Job-seekers attending the Gentex job fair in Holland on Thursday are reflected in anautomotive rear-view mirror manufactured by the Zeeland company.
Upward bump unusualJOBLESS RATE MAKES LESS THAN NORMAL SEASONAL CHANGE
BY GARRET M. ELLISON
THE GRAND RAPIDS PRESS
GRAND RAPIDS — Martin Steinhas a lofty goal of being one of thebest private equity executives of hisgeneration.As founder of the Blackford Capital
private equity firm in Grand Rapids,Stein manages offices in Michiganand California and decides whetherto invest in companies with annualrevenues that can hit $100 million.Yet, with such business acumen,
Stein says he still needs guidance inareas like people management, strat-egy, visioning and staying focused onthe big picture.That’s why he’s glad to be one of
the 2011 “mentees” with the JandernoaEntrepreneurial Mentoring programstarted by former Perrigo CEO MikeJandernoa in 2009.The JEM program connects young
entrepreneurs with a who’s who ofWest Michigan seasoned executivesthrough a three-year commitment tohelp mentor them as they build andstrengthen their business. The groupmet Thursday evening at the VanAndel Institute in Grand Rapids.Stein, who has connected with
Larry Leigh, former owner of Leigh’sof Western Michigan Inc., explainedthat most young CEO’s are missingtwo key things.“One, you don’t necessarily have a
lot of experience to draw from,” hesaid. “And two, you don’t have otherpeople within the organization youcan talk to.”The program has a few stipulations.
Mentees need to have at least $1 mil-lion in annual sales and a minimumof five full-time employees. There isan interview process that includessite visits, andmentees pay an annual$3,500 fee. All connections have to beapproved by the JEM board.“There’s a little bit of rigor to it
that I think is very healthy,” said PaulBoyer, vice chairman of Meijer, whohas been a mentor with the programfrom the beginning.“You’re bringing your professional
and life experience along.”Mentor Jerry Scott concurred.
“It’s helping younger folks not makethe same mistakes I made,” said theformer president of GHSP, an automanufacturer that diversified intoelectronics to weather the manufac-turing downtown.Friends outside of work don’t un-
derstand the business world. Peopleinside are going to treat you differ-ently “because you have control overtheir destiny,” he said. “Often timesthey are going to tell you what theythink you want to hear.”For about an hour, the group lis-
tened to Dave Brandon, former CEOof Dominos Pizza and current athletic
SEE JANDERNOA, A11
JandernoameetingaddressesCEO
weaknessesProgram connects young
executives with seasoned pros
IN BRIEFAUBURN HILLS
Solar panel creatorloses $42.1M
Energy Conversion DevicesInc., the parent company ofsolar panel maker United SolarOvonic, on Thursday reporteda fiscal fourth-quarter loss of$42.1 million, or 84 cents pershare. Sales of $73.1 millionwere buoyed by a single systemsale worth nearly $41 millionin Italy. Quarterly sales were off15 percent when compared withfiscal 2010’s fourth quarter.The company, which operatestwo solar laminate plants inGreenville, said it continuedrestructuring efforts, curtailingproduction and cutting 300jobs.
DETROIT
GM, LG to collaborateGeneral Motors Co. andKorean battery maker LGGroup said Thursday they willjointly design and engineerelectric vehicles under anew agreement. LG alreadysupplies lithium-ion batteriesfor the Chevrolet Volt andOpel Ampera, which areelectric cars with small backupgas engines. LG also suppliedthe batteries for a test fleetof electric Chevrolet Cruzesmall cars. Under the newagreement, engineers fromboth companies will worktogether on parts as well asvehicle structures and designs.The agreement doesn’t affectanother pact GM signedearlier this month with A123Systems Inc. to producebatteries for future electricvehicles. “Many solutions fortomorrow’s transportationneeds may be available morequickly by building on ourpartnership strategy,” GM ViceChairman Steve Girsky saidin a statement. “Consumersbenefit by getting the latestfuel-saving technologyfaster if we work with thebest suppliers and we savetime and money in thedevelopment process.”
DETROIT
GM cutting trucksGeneral Motors Co. says it iscutting pickup truck productionnext month in a sign thattruck sales aren’t as robust asthe companyhad hoped.Spokesman TomWickham saysGM canceledfive scheduledovertime shiftson Saturdays inSeptember andOctober. He didn’tknow how manyvehicles would beaffected, but theFlint plant where the pickupsare made can produce 900trucks per day. The Flint plantadded a third shift earlier thismonth.
WASHINGTON
Interest rates not enoughSuper-low interest rates haven’tdone what they usually doafter a recession. They haven’tignited economic growth orrevived the home market orpersuaded consumers to spendfreely again. They have, though,caused misery for retireesand others who depend oninterest income. Such incomeplummeted 27 percent from2008 to last year. The Fedthis month announced plansto keep short-term rates nearzero through mid-2013 unlessthe economy improves. Andin a speech today, ChairmanBen Bernanke will likely layout options for lowering long-term rates even further belowthe current near-record lows.One option is a third roundof Treasury bond purchasesby the Fed. Such purchaseswould be intended to nudgerates even lower, to encouragespending and borrowingand raise stock prices. Butadditional rate declines wouldlikely also further drive downrates on savings vehicles.
—The Associated Press
TomWickham
THE GRAND RAPIDS PRESS FRIDAY, AUGUST 26, 2011 A11
American Funds A: AmcpA p 17.57 -.27 -6.3American Funds A: AMutlA p 23.87 -.37 -4.6American Funds A: BalA p 17.34 -.17 -2.2American Funds A: BondA p 12.49 +.02 +4.7American Funds A: CapIBA p 48.40 -.59 -1.2American Funds A: CapWGA p 32.05 -.53 -8.9American Funds A: EupacA p 36.65 -.63 -11.4American Funds A: FdInvA p 33.46 -.54 -8.3American Funds A: GwthA p 27.71 -.41 -9.0American Funds A: HI TrA p 10.71 ... -.5American Funds A: IncoA p 16.08 -.17 -.9American Funds A: ICAA p 25.55 -.37 -8.4American Funds A: N PerA p 25.93 -.43 -9.4American Funds A: NwWrldA 48.75 -.71 -10.7American Funds A: SmCpA p 33.83 -.58 -12.9American Funds A: WshA p 26.12 -.44 -2.9BlackRock A: GlAlA r 18.65 -.15 -3.2Columbia Class Z: Acorn Z 26.58 -.62 -10.8Davis Funds A: NYVen A 30.98 -.43 -9.8Dodge&Cox: Balanced 64.93 -.79 -6.5Dodge&Cox: Income 13.39 +.02 +3.3Dodge&Cox: IntlStk 30.74 -.54 -13.9Dodge&Cox: Stock 96.13 -1.65 -10.1Fairholme 26.00 -.20 -26.9Fidelity Freedom: FF2020 n 13.25 -.09 -3.5Fidelity Freedom: FF2030 n 12.96 -.12 -5.5Fidelity Invest: Balanc n 17.54 -.15 -3.0Fidelity Invest: BlueChGr n 42.24 -.77 -6.9Fidelity Invest: Contra n 63.80 -.91 -5.7Fidelity Invest: DivIntl n 26.81 -.42 -11.1Fidelity Invest: GroCo n 78.85 -1.53 -5.2Fidelity Invest: InvGrBd n 11.81 +.03 +5.5Fidelity Invest: LowP r n 36.01 -.68 -6.2Fidelity Invest: Magelln n 62.13 -.99 -13.2Fidelity Invest: Puritn n 17.13 -.13 -3.5Fidelity Invest: TotalBd n 11.01 +.03 +5.0First Eagle: GlblA 45.15 -.48 -2.6Frank/Temp Frnk A: IncomA p 2.04 -.01 -2.5Frank/Temp Temp A: GrwthA p 16.23 -.25 -8.8Oakmark Funds I: EqtyInc r 26.40 -.30 -4.8Oppenheimer A: DvMktA p 31.01 -.64 -15.0Perm Port Funds: Permannt 48.49 -.11 +5.9Price Funds: CapApp n 19.34 -.23 -4.8Price Funds: EqInc n 21.39 -.33 -9.0Price Funds: EqIndex n 31.31 -.49 -6.8Price Funds: Growth n 29.72 -.51 -7.6Price Funds: MidCap n 53.14 -.97 -9.2Price Funds: N Inc n 9.65 +.01 +4.0Price Funds: Value n 21.10 -.32 -9.6Vanguard Admiral: 500Adml n 107.12 -1.69 -6.7Vanguard Admiral: TtlBAdml n 10.94 +.02 +5.4Vanguard Fds: InflaPro n 14.10 +.10 +10.6Vanguard Fds: IntlGr n 17.24 -.28 -10.9Vanguard Fds: Prmcp r n 60.03 -1.07 -8.8Vanguard Fds: STAR n 18.17 -.17 -3.9Vanguard Fds: TgtRe2015 n 12.12 -.10 -2.4Vanguard Fds: TgRe2020 n 21.28 -.23 -3.7Vanguard Fds: TgtRe2025 n 12.02 -.14 -4.8Vanguard Fds: TgtRe2035 n 12.19 -.18 -6.9Vanguard Fds: WndsII n 23.65 -.34 -6.9Vanguard Idx Fds: TotlIntl n 13.98 -.23 -11.3Vanguard Idx Fds: TotStk n 28.94 -.50 -7.6
MUTUAL FUNDSFUND NAV CHG YTD
MOST ACTIVENAME VOL(00) LAST CHG
GAINERSNAME LAST CHG % CHG
LOSERSNAME LAST CHG % CHG
COMMODITIESCLOSE PVS CHG % YTD
INTEREST RATESCLOSE PVS CHG YR AGO
TRENDS52-WEEK YTD 52 WK
HIGH LOW INDEX LAST CHG % CHG CHG CHG
BkofAm 7987305 7.65 +.66
S&P500ETF 2717178 116.28 -1.80
SPDR Fncl 1845936 12.66 -.04
DrxFnBull 930335 13.31 -.31
Citigrp rs 890857 29.83 +1.38
PwShs QQQ 829008 51.83 -.86
SprintNex 671392 3.23 -.22
iShR2K 666026 67.50 -1.70
GenElec 662538 15.45 -.27
iShEMkts 550808 39.84 -.79
WellsFargo 547641 24.76 +.33
Sanfilp 8.45 +1.85 +28.0
Banro wt 2.39 +.51 +27.1
GulfRes 2.09 +.36 +20.8
B&HO 5.22 +.86 +19.7
CollctvBrd 12.19 +1.91 +18.6
PhrmAth 2.63 +.41 +18.5
TiVo Inc 9.50 +1.38 +17.0
CrwfdA 5.10 +.69 +15.6
UnivDisp 46.73 +6.31 +15.6
Tegal rs 3.00 +.40 +15.4
Zillow n 30.25 +3.99 +15.2
LifePrt slf 6.70 -1.64 -19.7
AviatNetw 2.47 -.50 -16.8
ParkBcp 2.15 -.42 -16.3
CameltInfo 4.15 -.77 -15.7
BrownShoe 6.74 -1.09 -13.9
AmIndep 5.05 -.69 -12.0
Pendrell 2.29 -.31 -11.9
ZionO&G 2.62 -.35 -11.8
rue21 23.88 -3.09 -11.5
CIFC Corp 5.01 -.64 -11.3
Dialogic n 2.98 -.38 -11.3
Crude Oil (bbl) 85.30 85.16 +.16 -6.65Ethanol (gal) 2.89 2.91 -.10 +21.57Heating Oil (gal) 2.99 2.96 +.84 +17.37Natural Gas (mm btu) 3.93 3.92 +.23 -10.76Gold (oz) 1,759.80 1,754.10 +.32 +23.83Platinum (oz) 1,822.40 1,826.30 -.21 +2.77Silver (oz) 40.74 39.16 +4.04 +31.80Corn (bu) 7.32 7.32 +.07 +16.41Lumber (1,000 bd ft) 226.20 227.00 -.35 -25.10Soybeans (bu) 13.86 13.87 -.04 -.56Wheat (bu) 7.57 7.49 +1.07 -4.66
3-month T-bill ... .01 -.01 .166-month T-Bill .02 .03 -.01 .191-yr T-note .08 .09 -.01 .272-year T-Note .21 .23 -.02 .5110-year T-Note 2.23 2.29 -.06 2.5430-year T-Bond 3.60 3.65 -.05 3.58Bond Buyer Muni Idx 5.08 5.08 ... 4.87The prime rate stands at 3.25 percent.
5,627.85 4,010.52 D.J. Transport 4,343.73 -84.70 -1.91 -14.94 +6.11442.01 381.99 D.J. Utilities 424.55 -6.73 -1.56 +4.83 +10.178,718.25 6,594.95 NYSE Comp. 7,149.67 -123.46 -1.70 -10.23 +7.272,887.75 2,099.29 NASD Comp. 2,419.63 -48.06 -1.95 -8.79 +14.201,370.58 1,039.70 S&P 500 1,159.27 -18.33 -1.56 -7.82 +10.70868.57 588.58 Russell 2000 674.42 -18.15 -2.62 -13.94 +12.4514,562.01 10,877.63 Wilshire 5000 12,165.60 -211.81 -1.71 -8.94 +10.87
STOCKSYTD 52-WEEK YLD VOL NET
% CHG HIGH LOW Stock (SYM) DIV % PE 100s CLOSE CHGYTD 52-WEEK YLD VOL NET
% CHG HIGH LOW Stock (SYM) DIV % PE 100s CLOSE CHG
SNAPSHOTS
Dow Jonesindustrials
Aug. 25, 2011
Pct. change from previous: -1.51% High: 11,406.39 Low: 11,106.76
11,149.82
-170.89
13,000
12,000
11,000
10,000
9,000
8,000AM J J
Aug. 25, 2011
Nasdaqcomposite
Pct. change from previous: -1.95% High: 2,482.90 Low: 2,415.24
2,419.63
2,200
2,600
3,000
1,800AM J J
-48.06
-24.7 18.47 9.92 Alcoa AA .12 1.0 13 244484 11.59 -.28-38.1 16.20 7.66 AmAxle AXL 4 19680 7.96 -.48-42.7 15.31 6.01 BkofAm BAC .04 .5 dd 7987305 7.65 +.66-24.2 27.70 12.54 Brunswick BC .05 .4 dd 11198 14.21 -.51+3.0 20.46 16.96 CMS Eng CMS .84 4.4 13 23679 19.16 -.37+17.2 22.69 10.99 CedarF FUN .55e 3.1 dd 687 17.77 -.11-25.1 23.04 15.53 ChemFinl CHFC .80 4.8 12 692 16.58 -.79-44.6 43.53 22.12 Comerica CMA .40 1.7 12 52515 23.41 -.43+8.9 52.78 43.22 DTE DTE 2.35 4.8 12 15746 49.36 -.57-34.2 19.35 9.91 DanaHldg DAN 54 35394 11.32 -.29-22.3 56.49 34.37 Eaton s ETN 1.36 3.5 12 26789 39.42 -1.28-33.7 15.75 9.13 FifthThird FITB .24 2.5 10 205454 9.74 -.37-29.8 135.72 80.77 Flowserve FLS 1.28 1.5 12 5628 83.71 -3.26-38.8 18.97 9.81 FordM F 5 485892 10.28 -.17-15.4 78.27 55.46 GenDynam GD 1.88 3.1 9 18008 60.00 -1.00-15.5 21.65 14.25 GenElec GE .60f 3.9 13 662538 15.45 -.27-39.5 39.48 21.18 GenMot n GM 6 108740 22.30 -.07-17.9 35.35 16.69 Gentex GNTX .48 2.0 23 4620 24.26 -.70+2.1 5.87 3.02 GraphPkg GPK 14 11753 3.97 -.28-29.8 7.70 4.47 HuntBnk HBAN .16f 3.3 11 184545 4.83 -.10+53.8 4.75 1.00 IndBkMI rs IBCP dd 112 2.00 +.02-8.0 33.01 19.33 IntPap IP 1.05 4.2 9 39500 25.07 -.51
-15.8 48.36 32.31 JPMorgCh JPM 1.00 2.8 8 534609 35.72 -.11-22.3 42.92 26.10 JohnsnCtl JCI .64 2.2 13 53812 29.68 -1.27-23.0 41.71 29.85 Kaydon KDN .80f 2.6 21 1867 31.34 -1.14+3.3 57.70 48.51 Kellogg K 1.72f 3.3 16 18030 52.79 -.65-9.6 88.55 62.95 L-3 Com LLL 1.80 2.8 7 13471 63.69 -1.70-30.8 5.20 1.29 Macatawa MCBC 10 120 2.85 -.09-30.9 62.20 33.20 MagnaI gs MGA 1.00 2.8 8 14642 35.91 -.50-.7 10.26 3.87 MercBank MBWM dd 17 8.14 +.05-28.5 28.94 16.23 MillerHer MLHR .09 .5 17 3604 18.10 -.50-23.3 65.19 42.70 PNC PNC 1.40 3.0 7 87147 46.58 -.29-23.8 99.40 58.71 ParkerHan PH 1.48 2.2 10 15611 65.79 -1.69+43.6 94.61 56.09 Perrigo PRGO .28 .3 24 6192 90.94 -2.73+2.6 21.45 15.66 Pfizer PFE .80 4.5 12 509249 17.96 -.43-31.5 87.13 48.94 SPX Cp SPW 1.00 2.0 15 20239 48.96 -2.70-12.9 21.37 12.76 SprtnStr SPTN .26 1.8 10 1014 14.76 -.22-31.8 12.12 6.17 Steelcse SCS .24 3.3 24 11701 7.21 -.18-14.1 65.21 42.74 Stryker SYK .72 1.6 14 21463 46.13 -.89-36.3 28.87 14.76 Textron TXT .08 .5 35 80571 15.05 -.72-27.2 39.84 23.14 UnivFor UFPI .40 1.4 cc 858 28.30 +.02-36.0 92.28 55.00 Whrlpl WHR 2.00 3.5 17 22933 56.83 -1.52+5.7 43.36 25.02 WolvWW WWW .48 1.4 14 2763 33.71 -.77-19.7 5.08 3.19 X-Rite XRIT cc 413 3.67 -.16
BY DAVE ALEXANDER
PRESS NEWS SERVICE
MUSKEGON — Sappi FinePaper North America madethe stunning announcementThursday afternoon that aWestMichigan demolition companyhas purchased its vacant millon a sprawling Muskegon Lakesite.Melching Inc. of Nunica has
purchased the South Africancompany’s Muskegon plantand waterfront property foran undisclosed price, companyofficials said. The purchaseincludes about 119 acres andnearly amile ofMuskegon Lakewaterfront property in the city’sLakeside neighborhood.“Sappi Fine Paper of North
America selectedMelching Inc.as the buyer based on its exper-tise and successful track recordin addressing industrial sites,strong long-term relationshipsin the local area and robust re-development plans,” said SappiVice President Anne Ayer.According to Sappi officials,
Melching is reviewing plans toredevelop the site for a “varietyof industrial uses.” Melching isa demolition, dismantling andremediation services company.Sanabe & Associates LLC wasSappi’s financial adviser in thetransaction that was completedThursday, company officialssaid.Attempts to reach company
President DougMelchingwereunsuccessful. Melching is thecompany that demolished andrecycled thematerials from thedowntown Muskegon Mall.Muskegon Mayor Steve
Warmington said theMelchingpurchase is a significant devel-opment for one of themost im-portant properties in the city.“The city is encouraged and
happy that the next phase inthe life of that property is mov-ing forward with the sale of thesite,” Warmington said. “Welook forward to working withMelching to redevelop the siteand bring jobs to Muskegon.”Sappi and previous paper
companies had produced prod-ucts on the Muskegon mill sitefor more than 100 years. Sappipermanently ended operationson the site in August 2009 “dueto industry and economic con-ditions,” the company said. In2010, the company auctionedoff its equipment.The city and community
faced the possibility of theMuskegon papermill sitting va-cant and deteriorating for years,if not decades. The site oncesupported 1,200 jobs andwithinthe past decades hadmore than800 highly skilled and paid in-dustrial workers.In the end, Sappi eliminated
190 union and salaried workerswhen it closed in 2009. Besidesthe loss of jobs, the MuskegonCounty Wastewater Manage-ment System lost its largest
customer, significantly cuttingthe flow to the land-based treat-ment system. The reduction inflow has cost municipal andindustrial users of the systemsignificantly more in sewagerates.According to the company
website, Melching Inc. wasfounded by Doug Melchingin 1986 to provide demoli-tion and hazardous materials
remediation services. Thecompany has grown to providethose services, including as-bestos abatement, throughoutNorth America.Thewebsite lists recent proj-
ects Melching has worked on,including being the lead con-tractor and the subcontractor.Besides the Muskegon Malldemolition, other Muskegon-area projects include hazardous
materials removal fromMuskegon Heights, demolitionof the BurgessNorton plant andtheWesternMichiganChristianHigh School in Muskegon.The company’s work has
included taking down the Kel-vinator manufacturing plant inGrand Rapids, the Steelcasepower plant in Grand Rapidsand the General Chemicalplant in Manistee.
New owner: The Sappi FinePaper property is seen onthe Muskegon Lake shorelinein 2006. Sappi has sold the119-acre site to Melching Inc.of Nunica.
PRESS NEWS SERVICE FILE PHOTOS
Sappi site onMuskegon Lake is sold
BY PETER LATTMAN
THE NEW YORK TIMES
Former officials of LehmanBrothers, including RichardS. Fuld Jr., its former chiefexecutive, have agreed to pay$90 million to settle a share-holder lawsuit that accusedthem of misleading investorsabout the investment bank’shealth in the months leadingto its collapse.In a court filing on Thurs-
day in U.S. Bankruptcy Courtin Manhattan, 13 Lehman ex-ecutives and directors askeda judge to release insuranceproceeds that would pay forthe settlement.The potential settlement,
which would be the largest todate of a lawsuit against Leh-man’s top officials, would notaffect the status of any out-standing government investi-gations of the company and itsmanagement.Three years ago next month,
Lehman Brothers filed for thelargest corporate bankruptcy inhistory, an event that helped setoff the global financial crisis.The company has been protect-ed from litigation since it filedfor Chapter 11 bankruptcy.But investors filed sev-
eral lawsuits against formerLehman officials, includingone filed by a group of pensionfunds that asked for billions ofdollars in damages, accusingthe bank’s senior executivesand directors of lying aboutits financial state.The pension fund law-
suit contends that Fuld; ErinCallan, the bank’s former chieffinancial officer, and others“concealed the true extent ofthe company’s exposure to
subprime related assets andfinancial positions, and ma-terially misled the investingpublic.”If the bankruptcy judge
agrees with the Lehman offi-cials’ request and releases theinsurance proceeds to settlethis lawsuit, Fuld and his for-mer colleagues will not haveto bear any personal expensein resolving the case. Theywould also neither admit nordeny wrongdoing.Lawyers say it is common for
insurance proceeds to covercorporate directors and officersin shareholders’ lawsuits.“It is unusual for individual
executives to pay out of theirown pockets,” said KevinLacroix, a lawyer and author ofthe D&O Diary blog.“Companies buy insurance
for exactly a situation like thiswhere it is insolvent and can-not indemnify their directorsand officers.”Only in rare instances do
directors and officers have tomake out-of-pocket paymentsin shareholders’ suits.In 2005, former Worldcom
directors paid about $25millionof their own money to resolvea lawsuit with the company’sinvestors. Enron directors alsopaid roughly $13 million to set-tle shareholders’ claims.In those cases, the com-
panies’ insurance policiesdid not cover the cost of thesettlement.In the case of Lehman Broth-
ers, the investment bank’spolicies are valued at a total of$250 million, according to thecourt filing. Other litigants arescrambling to settle cases withLehman before the company’sinsurance coffers run dry.
Former Lehmanofficials to pay
$90M settlement
CONTINUED FROM A10
director at the University ofMichigan, explain his time as achange agent at companies likeProcter &Gamble and ValassisCommunications.“I’m the greatest hits of
everybody I ever worked for,”he said. Having never takena business class in his life, hesaid, “If you go back and put avideo on everything I did, itwassomething I had stolen fromsomebody I had observed.”Brandon works through six
steps to create change: Build acase, offer a vision, have skills toachieve, incentivize people, uti-lize resources andhaveanactionplan.Takingout anyoneof thosesteps either results in the statusquo, a confused organization,
high levels of anxiety, gradual tononexistent change, frustratedemployees or false starts.Jandernoa told the group he
was excited about the poten-tial for the JEM connectionsto create jobs in West Michi-gan. “The role that small andmedium-sized businesses playin job growth is rather substan-tial and critical for our future,”he said.“To have the opportunity to
participate in this activity dur-ing this time of uncertainty inour country, and bring alongsome dialogue and discus-sion on how to deal with thatand move it forward is verytimely.”
Email: [email protected]
JANDERNOAOPENING A BUSINESS DIALOGUE
PRESS PHOTOS/KATY BATDORFF
From experience: David Brandon, former CEO of DominosPizza and current athletic director at University of Michigan,spoke at the Jandernoa Entrepreneurial Mentoring annualmeeting on Thursday at the Van Andel Institute.
Sharing stories: Mentee Brian Quist, left, talks with fellowmentee Martin Stein and his wife, Rebecca, at the JandernoaEntrepreneurial Mentoring annual meeting.
Coming Sunday
A Sundayin the lifePress photographerscaptured 24 hours of aWest Michigan Sunday.See how we spent ourtime in a 12-page photoessay on Aug. 28.
4201216-01
